Correlation Between CurveBeam and Imricor Medical

Can any of the company-specific risk be diversified away by investing in both CurveBeam and Imricor Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CurveBeam and Imricor Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CurveBeam AI Limited and Imricor Medical Systems, you can compare the effects of market volatilities on CurveBeam and Imricor Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CurveBeam with a short position of Imricor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurveBeam and Imricor Medical.

Diversification Opportunities for CurveBeam and Imricor Medical

0.58

Correlation Coefficient

CurveBeam  Imricor Medical

Very weak diversification

The 3 months correlation between CurveBeam and Imricor is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CurveBeam AI Limited and Imricor Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imricor Medical Systems and CurveBeam is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CurveBeam AI Limited are associated (or correlated) with Imricor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imricor Medical Systems has no effect on the direction of CurveBeam i.e., CurveBeam and Imricor Medical go up and down completely randomly.

Pair Corralation between CurveBeam and Imricor Medical

Assuming the 90 days trading horizon CurveBeam AI Limited is expected to under-perform the Imricor Medical. In addition to that, CurveBeam is 1.18 times more volatile than Imricor Medical Systems. It trades about -0.02 of its total potential returns per unit of risk. Imricor Medical Systems is currently generating about 0.1 per unit of volatility. If you would invest  20.00  in Imricor Medical Systems on October 25, 2024 and sell it today you would earn a total of  114.00  from holding Imricor Medical Systems or generate 570.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	72.34%
Values	Daily Returns

CurveBeam AI Limited  vs.  Imricor Medical Systems

CurveBeam AI Limited

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CurveBeam AI Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, CurveBeam unveiled solid returns over the last few months and may actually be approaching a breakup point.

Imricor Medical Systems

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Imricor Medical Systems are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Imricor Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CurveBeam and Imricor Medical

The main advantage of trading using opposite CurveBeam and Imricor Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurveBeam position performs unexpectedly, Imricor Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Imricor Medical will offset losses from the drop in Imricor Medical's long position.

The idea behind CurveBeam AI Limited and Imricor Medical Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.